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Russian regulator suspects fraud at gas deposit in Siberia-1

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ST. PETERSBURG, February 14 (RIA Novosti) - The Russian environmental watchdog suspects possible fraud during exploration work at the Angaro-Lensk natural gas deposit in Siberia's Irkutsk Region, an agency official said Wednesday.

Oleg Mitvol, deputy head of the Federal Service for the Oversight of Natural Resources, said information about 1.2 trillion cubic meters of estimated natural gas reserves at the deposit, provided by the small private energy company Petromir, was dubious.

"I began an investigation yesterday," Mitvol said. "It all looks like a major fraud."

He said the company drilled only one well during its exploration work, while it takes several dozen wells to confirm such a large estimated reserve.

"They should either be given the Hero of Russia award or be sent to prison, as there can be no compromise," Mitvol said.

The official said the next possible step of suspected fraud will be a sale of the deposit, which has faked estimated reserves.

On January 30, the Russian Ministry of Natural Resources reported that the unknown Petromir company had discovered a natural gas deposit in the Irkutsk Region with estimated reserves comparable to those of the Kovykta gas deposit in East Siberia, which has proven reserves of 2 trillion cubic meters.

Petrmir was founded in 1999 by Anatoly Karpov, the 12th world chess champion. According to the respected business daily Vedomosti, Karpov was the sole founder of the company. However, a year later the British company Petromir U.K. Ltd. was listed as the company's founder.

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